Blog: The Breakdown | 89.3 KPCChttp://www.scpr.org/blogs/economy
The Breakdown explains what's behind Southern California business and economic news. It describes the effects the headlines have on you: whether you're an investor, a business owner, an employee, homeowner, consumer or just someone who wants to know how to save a buck.The Breakdown is movinghttp://www.scpr.org/blogs/economy/2015/02/20/17936/the-breakdown-is-moving/http://feeds.scpr.org/~r/debord-report/~3/STnNooTAvo0/
<img src="http://a.scpr.org/i/a6e235d8c4f2521ae2d259c64819f9af/84351-small.jpg" width="450" height="300" alt="I got it! Moving box on back." />
<p><i>(Stock photo); Credit: Meathead Movers/flickr Creative Commons</i></p>
<p>As of today, KPCC is moving Breakdown coverage to our main <a href="http://www.scpr.org/business">business page</a>, where you will find KPCC’s ongoing news and information about Southern California business and the economy.</p>
<p>As a result, the Breakdown blog will no longer be updated. All previous Breakdown posts will remain available here as an archive.</p>
<p>Please let us know if there are issues you feel merit coverage. You can comment below, <a href="mailto:plee@scpr.org">by email</a>, on our <a href="http://facebook.com/kpcc">Facebook page </a>or on our <a href="http://twitter.com/kpcc">Twitter feed</a> (just "@" mention @KPCC).</p><img src="//feeds.feedburner.com/~r/debord-report/~4/STnNooTAvo0" height="1" width="1" alt=""/>Fri, 20 Feb 2015 15:45:21 -0800http://www.scpr.org/blogs/economy/2015/02/20/17936/the-breakdown-is-moving/Ports see worst congestion since 2004 because of work stoppagehttp://www.scpr.org/blogs/economy/2015/02/09/17894/ports-of-la-and-long-beach-see-worst-congestion-si/http://feeds.scpr.org/~r/debord-report/~3/4xDSc7ih2pk/
Ben Bergman<img src="http://a.scpr.org/i/8da989b2587d14e8e24631af88f573ac/99938-small.jpg" width="450" height="299" alt="Port Labor" />
<p><i>In this Jan. 14, 2015, photo, shipping containers are stacked up waiting for truck transport at the Port of Los Angeles.; Credit: Damian Dovarganes/AP</i></p>
<p>The Ports of Los Angeles and Long Beach reopened Monday after ship loading and unloading was suspended this weekend because of a long-running labor dispute, which caused the worst delays the ports have seen in more than a decade.</p>
<p>The stoppage led to a queue of 31 ships, according to Kip Louttit, Executive Director of the Marine Exchange of Southern California, the agency that manages ship traffic.</p>
<p>“It’s quite unusual,” said Louttit.</p>
<p>There was a 10-day lockout at the ports in 2002, and an eight-day strike by port clerks in 2012, but even during those standoffs, the queue never exceeded 30 vessels.</p>
<p>The last time that happened was in 2004, because of staffing shortages at the Union Pacific Railroad. Some 65 ships were anchored, "backed up halfway down to San Diego, like 50 miles down the coast," Art Wong, spokesperson for the Port of Long Beach, <a href="http://www.joc.com/port-news/us-ports/port-long-beach/port-long-beach-says-congestion-has-been-worse-updated_20141023.html">told JOC.com,</a> a container shipping and international supply chain industry website.</p>
<p>By Monday afternoon, the situation had improved some: 24 vessels were waiting to dock.</p>
<p>Louttit says all those ships waiting at sea means cargo is not getting where it needs to be.</p>
<p>“We had an automaker from the Midwest stop by, trying to get an idea of what the flow would be, because their plants are running out of parts to make cars,” he said.</p>
<p>Los Angeles Councilman Joe Buscaino, who supports the dockworkers union, called on both sides to reach an agreement quickly. To underscore the delays the dispute is having, he travelled a mile and a half out to sea Monday morning to count the number of anchored ships for himself. He posted a video of his trip on Youtube:</p>
<p> </p><img src="//feeds.feedburner.com/~r/debord-report/~4/4xDSc7ih2pk" height="1" width="1" alt=""/>Mon, 09 Feb 2015 16:31:33 -0800http://www.scpr.org/blogs/economy/2015/02/09/17894/ports-of-la-and-long-beach-see-worst-congestion-si/Shared tech workspaces spread beyond sands of Silicon Beachhttp://www.scpr.org/blogs/economy/2015/02/06/17881/tech-workspaces-spread-beyond-sands-of-silicon-bea/http://feeds.scpr.org/~r/debord-report/~3/TmnZFc22XPE/
Brian Watt<img src="http://a.scpr.org/i/a966f56166ae0bd851cf85f9e0c90e58/99814-small.jpg" width="450" height="300" alt="" />
<p><i>People using a coworking space.; Credit: Cross Campus</i></p>
<p>In a sign of increased desire of professionals to work remotely, the successful Santa Monica shared workspace <a href="http://www.crosscamp.us/">Cross Campus</a> is opening a second location in Pasadena later this month, and the company hopes to open eight others in Southern California and beyond in the next two years. </p>
<p>Dubbed by one user as the <a href="http://www.laweekly.com/arts/how-las-new-shared-office-spaces-try-to-make-creative-people-more-productive-4137156">“nerve center” of the Silicon Beach tech scene</a>, Cross Campus opened its membership-based workspace facility in Santa Monica in 2012. </p>
<p>But co-founder Ronen Olshansky said the shared workspace phenomenon isn't limited to coders. </p>
<p>"Fewer and fewer people are making the traditional drive into the corporate office," Olshansky said. "They're working remotely as professionals, going off on their own as freelancers, or they're starting their own companies as entrepreneurs." </p>
<p>A forecast from Forrester Research says that 43 percent of workers will telecommute by 2016, compared to estimates of about a quarter of the workforce telecommuting last year. </p>
<p>Olshansky said that, for many people, working from home or in a coffee shop isn't productive. </p>
<p>That's led shared workspaces to pop up in Los Angeles, Culver City and Santa Monica. Among them: Maker City L.A., WeWork, NextSpace, Coloft and Hub LA. </p>
<p>Los Angeles-based tech investor David Waxman said these kind of shared spaces are crucial for the early stages of tech ventures.</p>
<p>"When you’re just starting out, and capital is very scarce, having not to commit to an entire office but having part of an office is very important," Waxman said. “There comes a collective energy when a bunch of entrepreneurs get together in the same space, even if they’re not working on the same project."</p>
<p>And he said Pasadena is a good choice for a shared workspace.</p>
<p>"It is the home of <a href="http://www.caltech.edu/">Caltech</a>, the <a href="http://www.artcenter.edu/accd/index.jsp">Arts Center</a>, and <a href="http://www.idealab.com/">IdeaLab</a> — probably the world’s first tech incubator — started there," he said.</p>
<p>But he said the need isn't limited to Pasadena.</p>
<p>"In Silver Lake, in South Pasadena, in Glendale, you see a lot of little pockets of people getting together, and as soon as there’s a critical mass, we’ll see co-working spaces like Cross Campus come into being," said Waxman, who named his investment firm <a href="http://tenoneten.net/about/">TenOneTen</a> after the two freeways that connect Santa Monica and the Westside to Pasadena. </p>
<p>Alex Maleki of IdeaLab in Pasadena is happy a well-known company is opening up in his city. </p>
<p>"Anything that helps attract talent and capital to the region," Maleki said, "is absolutely fantastic."</p><img src="//feeds.feedburner.com/~r/debord-report/~4/TmnZFc22XPE" height="1" width="1" alt=""/>Fri, 06 Feb 2015 05:00:02 -0800http://www.scpr.org/blogs/economy/2015/02/06/17881/tech-workspaces-spread-beyond-sands-of-silicon-bea/Can LAX get as big as other top airports?http://www.scpr.org/blogs/economy/2015/02/04/17880/can-lax-get-as-big-as-other-top-airports/http://feeds.scpr.org/~r/debord-report/~3/3htwlKIOEto/
Ben Bergman<img src="http://a.scpr.org/i/49ac3eb65d813a7f4b5dd79b85a48917/39516-small.jpg" width="450" height="299" alt="LAX Encounter restaurant " />
<p><i>More than 70 passengers travelled through LAX last year, an all-time record.; Credit: Photo by monkeytime | brachiator via Flickr Creative Commons</i></p>
<p>Here’s a pop quiz: What is the world’s busiest airport?</p>
<p>Almost two weeks ago, Chicago's O'Hare International claimed the honor.</p>
<p>"As Chicago reclaims its place with the world’s busiest airport, it speaks to the strength of our city’s economy," bragged Chicago Mayor Rahm Emanuel.</p>
<p>Not so fast, said Dubai, <a href="http://www.dubaiairports.ae/corporate/media-centre/press-releases/detail/dxb-takes-over-top-spot-for-international-passenger-traffic">which last week said it was number one.</a></p>
<p>“This historic milestone is the culmination of over five decades of double-digit average growth," announced HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Airports.</p>
<p>Then, on Wednesday, Atlanta weighed in, and yes, it also claimed to be the champion.</p>
<p>“I am pleased to announce that once again – for the 17th year in a row – Hartsfield-Jackson Atlanta International Airport is the busiest airport on Planet Earth, with more than 96.1 million passengers,” <a href="http://www.atlanta-airport.com/Airport/Newsroom/Press_Release_Article.aspx?id=980">Atlanta Mayor Kasim Reed said. </a></p>
<p>Airports Council International ranks Atlanta as number one in passenger traffic, <a href="http://www.aci.aero/Data-Centre/Annual-Traffic-Data/Passengers/2013-final">but those are based on 2013 numbers.</a> The group's 2014 numbers will be out in a few months, but until then we know that LAX proudly takes an undisputed sixth place.</p>
<p>Gina Marie Lindsey, Executive Director of the Los Angeles World Airports, announced her retirement Tuesday after a 33-year career in the aviation industry. Since Lindsey started in 2007, passenger traffic has grown by 15 percent. </p>
<p>Aviation consultant Jack Keady doesn’t think LAX stands a chance of competing with rapidly expanding Dubai, which state-owned Emirates airlines has made its glitzy global hub.</p>
<p>"Dubai has bumped everyone down,” said Keady.</p>
<p>Still, Keady says LAX will keep growing, even though it’s going to be working with the same number of runways for the foreseeable future.</p>
<p>“Instead of running 30-passenger turboprops and 100-passenger planes, you start bringing in the heavy metal,” said Keady.</p>
<p>Bigger planes are especially important because <a href="http://www.lawa.org/ourLAX/ourLAX.aspx?id=9247">under a 2006 settlement with airport neighbors</a>, once LAX hits 75 million passengers, it has to start closing gates.</p>
<p>More than 70 million passengers travelled through LAX last year, an all-time record.</p><img src="//feeds.feedburner.com/~r/debord-report/~4/3htwlKIOEto" height="1" width="1" alt=""/>Wed, 04 Feb 2015 16:15:31 -0800http://www.scpr.org/blogs/economy/2015/02/04/17880/can-lax-get-as-big-as-other-top-airports/From Sriracha sauce to jet engine parts, LAEDC tries to keep jobs in LAhttp://www.scpr.org/blogs/economy/2015/02/03/17874/from-sriracha-sauce-to-jet-engine-parts-laedc-trie/http://feeds.scpr.org/~r/debord-report/~3/W0tZl67HJfM/
Brian Watt<img src="http://a.scpr.org/i/1ed067083f304745c38b58d3c0729c3e/90696-small.jpg" width="450" height="300" alt="Sriracha Factory - 6" />
<p><i>The LAEDC helped Huy Fong Foods reach a compromise to keep operating its Sriracha factory in Irwindale ; Credit: Maya Sugarman/KPCC</i></p>
<p>Even as California loses manufacturing jobs, a program run by the Los Angeles County Economic Development Corporation has fought to save some. </p>
<p>When a company is considering relocating to take advantage of lower costs or an easier business climate, the LAEDC’s business assistance program steps in. </p>
<p>It did so in the well-publicized case of Huy Fung Foods last year. </p>
<p>When the city of Irwindale filed a<a href="http://www.scpr.org/programs/airtalk/2014/05/28/37636/stalemate-between-irwindale-and-sriracha-factory-e/"> lawsuit against the Sriracha sauce-maker</a> because of bad smells, politicians from other states - most notably Texas - began to circle, <a href="http://www.scpr.org/blogs/economy/2014/04/18/16407/how-much-would-moving-cost-the-maker-of-sriracha/">offering the company a new home</a>. </p>
<p>Fighting against those suitors is a familiar dance for the nonprofit Los Angeles County Economic Development Corporation. Many states and municipalities have similar agencies, whose job it is to try to attract and keep employers.</p>
<p>In the Sriracha case, the LAEDC prepared an economic impact analysis, met with the company and the South Coast Air Quality Management District and negotiated a compromise that kept the hot sauce manufacturer here, according to Carrie Rogers, Vice President of Business Assistance and Development with LAEDC.</p>
<p>"We all love Sriracha," she said, adding that she was happy to keep the "180 jobs and really to thwart the efforts of Governor Perry from Texas to try to lure our company away to their state."</p>
<p>The LAEDC estimates its business assistance program has played a role in keeping or luring 200,000 jobs since 1996, when it was formed. It's being recognized by the County Board of Supervisors for those efforts today.</p>
<p>But plenty of jobs still leave.</p>
<p><a href="http://www.scpr.org/blogs/economy/2014/07/15/17010/study-as-manufacturing-changes-california-loses-jo/">In a study</a> published in July, the LAEDC said between 1990 and 2012, California lost about 40 percent of its manufacturing jobs – 842,180. </p>
<p>"We compete internationally so a lot of our competitors have gone to Mexico," said Jeff Hynes, CEO of Covina-based <a href="http://aipaerospace.com/composites-home">Composites Horizons Incorporated</a>, which makes ceramic structures for jet engines. "A week doesn’t go by that I don’t get a call from an economic development corp out of Texas or the South."</p>
<p>He scored a big contract recently and needed to expand fast to begin fulfilling orders. </p>
<p>"Los Angeles - in our particular industry - has a very good supplier base with materials and equipment," he said "but certainly facility costs are lower in other areas of the state and country." </p>
<p>He said the LAEDC helped him get the permits quickly to buy and modify another building on its street and they decided to stay put. </p>
<p>Composites Horizons currently employs 200 people but plans to add 50 employees this year and another 50 next year, he said. </p>
<p>Rogers, of the LAEDC, said that may not seem like much, but it's important to support businesses like this one.</p>
<p>"When you take a step back and think about it, here’s a company that’s growing when many businesses aren’t," she said. "We know there are suppliers that feed into Composites Horizons. So when they get millions of dollars worth of contracts, we know that many more companies and employees around the county will be employed doing work directly for this company."</p><img src="//feeds.feedburner.com/~r/debord-report/~4/W0tZl67HJfM" height="1" width="1" alt=""/>Tue, 03 Feb 2015 12:14:27 -0800http://www.scpr.org/blogs/economy/2015/02/03/17874/from-sriracha-sauce-to-jet-engine-parts-laedc-trie/Refinery strike could mean higher gas priceshttp://www.scpr.org/blogs/economy/2015/02/02/17873/refinery-strike-could-mean-higher-gas-prices/http://feeds.scpr.org/~r/debord-report/~3/ka5HTjKA6P0/
Ben Bergman<img src="http://a.scpr.org/i/a693c72fc4c3015cda870abc211fabc2/3231-small.jpg" width="324" height="214" alt="Mercer 3025" />
<p><i>Tesoro says it’s been planning for a strike and will continue operating two of the effected refineries, including one in Carson.; Credit: Getty Images</i></p>
<p>More than 800 workers walked off the job early Sunday at an oil refinery in Carson because of a labor dispute, joining workers at eight other refineries around the country. </p>
<p>National strikes have been rare in the refining business. The last one happened in 1980, and it took three months to resolve. If this dispute lasts that long, analysts say gas prices could rise.</p>
<p>“It’s very possible we may have seen the last of two dollar gasoline in the near term,” said Carl Larry director of oil and gas at consulting firm Frost &amp; Sullivan. “Without production from these refineries, we’re going to see tighter supply and higher prices."</p>
<p>Making matters worse, many refineries are switching over to summer blend gas, which is cleaner burning, but also more expensive.</p>
<p>Jim Burkhard, Managing Director at IHS Cambridge Energy Research Associates, cautions that it is too soon to know what the effect of the strike will be, and even though the steelworkers have 64 percent of U.S. oil output in their hands, there’s still a lot of other supply.</p>
<p> “Remember the oil market overall is very well supplied right now,” said Burkhard. "There's plenty of refining capacity around the world, you would just have some modification of trade flows."</p>
<p>The Carson refinery processes 363,000 barrels per day at peak capacity and employs 1,450 workers. Tesoro Corporation, which operates the plant, says it’s been planning for a strike and will continue operations.</p>
<p>"Tesoro is confident that the Company can continue to safely operate the refineries and meet customer commitments until resolution is reached with the [United Steel Workers]," Tesoro said in a written statement.</p>
<p>The USW represents workers at 65 U.S. refineries. It says the facilities where workers have not walked out will continue operating under a rolling 24-hour contract extension. </p>
<p>“This work stoppage is about onerous overtime; unsafe staffing levels; dangerous conditions the industry continues to ignore; the daily occurrences of fires, emissions, leaks and explosions that threaten local communities without the industry doing much about it; the industry’s refusal to make opportunities for workers in the trade crafts; the flagrant contracting out that impacts health and safety on the job; and the erosion of our workplace, where qualified and experienced union workers are replaced by contractors when they leave or retire,” USW International Vice President Gary Beevers said in a written statement.</p><img src="//feeds.feedburner.com/~r/debord-report/~4/ka5HTjKA6P0" height="1" width="1" alt=""/>Mon, 02 Feb 2015 16:48:34 -0800http://www.scpr.org/blogs/economy/2015/02/02/17873/refinery-strike-could-mean-higher-gas-prices/Freelancer? Avoid these '7 deadly sins' at tax time. http://www.scpr.org/blogs/economy/2015/02/02/17870/freelancer-avoid-these-seven-deadly-sins-at-tax-ti/http://feeds.scpr.org/~r/debord-report/~3/qWX_Qvbey20/
Brian Watt<img src="http://a.scpr.org/i/56bc4cba5753f63e46c6424c100acbc2/98531-small.jpg" width="450" height="286" alt="taxes tax refund check" />
<p><i>The organized freelancer will make sure the amount here is right.; Credit: Photo by Great Beyond via Flickr Creative Commons</i></p>
<p>For freelancers, consultants, actors and other self employed people, life gets complicated this time of year. Digging around for the paperwork to fill out tax forms practically qualifies as exercise.</p>
<p>"They have a nightmare trying to find receipts," said accountant Tristan Zier.</p>
<p>Zier founded <a href="https://www.tryzen99.com/about">Zen99</a> to help freelancers manage their finances, including filing their taxes. His most important advice to freelancers: keep track expenses and receipts year round rather than pursuing a paper chase as April 15 nears. </p>
<p>"When they can’t find receipts, they can’t write off their expenses," he said. "And they’re paying more money to the government instead of keeping it for themselves."</p>
<p>Zier and others have come up with a lists of<a href="https://tryzen99.com/blog_posts/the-7-most-common-1099-tax-mistakes"> common mistakes freelancers make at tax time.</a> </p>
<p>Here are seven don't - or, deadly sins, for freelances at tax time:</p>
<ol>
<li>
<strong>Not knowing what they owe.</strong> Zier says there are 20 different 1099 forms that get sent out to workers to track freelance gigs. One of them is the 1099-K, which only has to be sent to you by a company in paper form if you make over $20,000. "People think, 'Great, no paper form, no taxes on that," says Zier. "Big mistake there. You still have to self-report the income." </li>
<li>
<strong>Not knowing WHEN they owe</strong>. For freelancers who owe more than $1,000 in taxes for a year, tax time comes more often than just April 15. They have to pay taxes quarterly. But then it's not coming out of paychecks like it does for permanent employees. </li>
<li>
<p> <strong>Not tracking and writing off the right types of business expenses.</strong> Zier says many freelancers fail to realize they can write off part of their cell phone bill as a business expense. Expenses vary by the type of work. "A rideshare driver's biggest expense will be related to their car, while a web developer's biggest expense might be their home office," Zier says. "Figuring out what expenses are important to your type of work is important is maximizing your tax savings."</p>
</li>
<li>
<p><strong>Writing off personal expenses. </strong>This goes back to that cell phone. If you use the same phone for personal and business purposes, don't be tempted to write the whole bill off. Estimate the amount you use it for your work. The same goes for your vehicle. Don't go trying to write off miles driven to the beach. </p>
</li>
<li>
<p><strong>The Double No-No: counting expenses twice.</strong> Speaking of vehicles, Zier says most people use the Standard Mileage Rate ($0.56/mile for 2014), which factors in gas, repairs and maintenance and other costs like insurance and depreciation. But if you use this rate, you can't also expense your gas receipts and repair bills. </p>
</li>
<li>
<p><strong>Employee AND employer. </strong> At <a href="http://lifeofthefreelancer.com/tax-101-tips-for-the-independent-contractor/">lifeofthefreelancer.com</a>, financial consultant Brendon Reimer reminds freelancers they play both roles. For regular employees, Federal, State, and payroll taxes are withheld from a paycheck, and distributed on the employee’s behalf. It's how Social Security and Medicare are funded. The IRS mandates that the employer must pay half of every employee’s payroll tax, and the employee is responsible for the other half. Independent contractors have to handle both halves. "The IRS does give you a small benefit by letting you deduct the half that you pay yourself as a business expense," Reimer writes. Zier said the freelancer's sin here is believing he or she pays more taxes than the regular working stiff. </p>
</li>
<li>
<p><strong>Not keeping adequate records.</strong> The IRS requires you to keep proof of all business receipts, mileage, etc. If you can't show these, the IRS could refute the expense and force you to pay back taxes. Zier says the good news is there are other ways to prove expenses if you've lost the receipt. A bank or credit card statement with the date and location might do the trick. "The IRS is surprisingly accommodating if you are doing your best," Zier says. "If you're being a headache, they're going to be a headache as well." </p>
</li>
</ol><p>In separate reports, <a href="https://tryzen99.com/blog_posts/best-cities-for-independent-workers">Zen99</a> and the consumer finance web site <a href="http://www.nerdwallet.com/blog/cities/economics/best-cities-freelance-workers/">nerdwallet</a> ranked Los Angeles the best city for freelancers.</p>
<p>Each considered housing and health care costs, the percentage of freelancers in an area as factors. Zier said even before the sharing economy began to take off, the entertainment industry and growing tech scene were already strong sources of freelance gigs in L.A.</p>
<p>"Even back in 2012, L.A. had twelve percent of people report themselves as self-employed on the Census," Ziers said. "You know your Ubers and companies like that are really bringing a lot of attention to the contractor market, but it was a very robust community before."</p>
<p> </p><img src="//feeds.feedburner.com/~r/debord-report/~4/qWX_Qvbey20" height="1" width="1" alt=""/>Mon, 02 Feb 2015 11:28:07 -0800http://www.scpr.org/blogs/economy/2015/02/02/17870/freelancer-avoid-these-seven-deadly-sins-at-tax-ti/Why unions lead the $15 minimum wage fight, though few members will benefithttp://www.scpr.org/blogs/economy/2015/01/29/17859/why-unions-lead-the-15-minimum-wage-fight-though-f/http://feeds.scpr.org/~r/debord-report/~3/Y1EM7RYuGEQ/
Ben Bergman<img src="http://a.scpr.org/i/d67457d0925e9c1aa64560dd830b9690/99265-small.jpg" width="450" height="338" alt="Rusty Hicks" />
<p><i>“Union members and non-union members have a strong interest in seeing our economy grow," said Rusty Hicks, the new head of the Los Angeles County Federation of Labor, which represents over 300 unions.; Credit: Ben Bergman/KPCC</i></p>
<p>Labor unions have led the fight to raise the minimum wage in several American cities, including Los Angeles, where the City Council is considering two proposals right now that would give raises to hundreds of thousands of workers (to $13.25 an hour by 2017 and $15.25 an hour by 2019).</p>
<p>But few of the unions' members have benefited directly from the initiatives. So why do unions care about a $15 wage for non-union workers? </p>
<p>It’s part of a long-term strategy to protect the interests of their members, labor leaders say. They also see an opportunity to raise the profile of unions after years of falling membership.</p>
<p>"We can’t be the movement that’s just about us," said David Rolf, an international vice-president of SEIU, who led the first successful $15 minimum wage campaign in SeaTac, the town in Washington that is home to the region's similarly named airport. </p>
<p>“We have to be the movement that’s about justice for all," Rolf added. "The labor movement that people flocked to by the tens of millions in the 1930s wasn’t known for fighting for 500-page contracts. They were known for fighting for the eight-hour day, fighting to end child labor.”</p>
<p>The idea that workers should earn $15 dollars an hour first came to the public’s attention during a series of fast food strikes that started in New York City in late 2012. Those workers didn’t just walk off the job by themselves. They were part of a campaign organized by unions, led by SEIU, which is made up mostly of public sector and health care workers.</p>
<h2>$10 million fast-food strikes</h2>
<p>The Service Employees International Union spent $10 million dollars on the fast food strikes, <a href="http://www.nytimes.com/2014/09/05/business/economy/fast-food-workers-seeking-higher-wages-are-arrested-during-sit-ins.html?_r=1">according to The New York Times.</a> But none of those restaurants have unionized, and because it’s been so hard to form private sector union these days, they probably never will, said labor historian <a href="http://www.history.ucsb.edu/people/person.php?account_id=39">Nelson Lichtenstein</a>.</p>
<p>“In effect what you have now is the SEIU – its hospital membership or its members working at the Department of Motor Vehicles – helping to raise the wages of fast food workers, but not their own wages,” Lichtenstein said.</p>
<p>That's because unionized workers earn far more than the current or proposed new minimum wages, in L.A. an average of more than $27 an hour, <a href="http://www.irle.ucla.edu/publications/documents/TheStateoftheUnions2014PA1.pdf">according to UCLA's Center for Research on Employment and Labor. </a></p>
<p>The spread of the $15 minimum wage from SeaTac to Seattle to San Francisco — and now possibly Los Angeles — is a huge victory for labor unions, but it’s unlikely most of the people getting raises will ever be part of organized labor.</p>
<p>Still, the rank and file seem to support their unions' efforts.</p>
<p>“I personally support using our organization as a way to advocate for those who don’t have a voice," said Rafael Sanchez III, a teacher's assistant at Bell High School who's a member of SEIU Local 99. </p>
<h2>A challenging time for the labor movement</h2>
<p>In the 1950’s, about one in three American workers belonged to a union. Last year, just 11 percent did – or 6 percent of private sector workers – the lowest numbers in nearly a century.</p>
<p>Rolf says the minimum wage campaigns mark a change in tactics for organized labor; Rather than the shop floor, the focus is on the ballot box and city hall.</p>
<p>“Since at least the 1980s, winning unions in the private sector has been a Herculean task," Rolf said. "The political process provides an alternative vehicle.”</p>
<p>And an increasingly successful one. It was voters who approved the first $15 wage, in Washington state in 2013, and another one in San Francisco last year. </p>
<p>In Los Angeles, the issue is before the city council. <a href="http://www.scpr.org/news/2014/09/01/46366/mayor-eric-garcetti-to-announce-minimum-wage-propo/">Mayor Eric Garcetti opened the bidding, proposing a raise of $13.25 on Labor Day</a> before six council members countered with $15.25.</p>
<p>The Los Angeles County Federation of Labor – lead by Rusty Hicks — is pushing for the higher option.</p>
<p>“Union members and non-union members have an interest in seeing our economy grow," said Hicks. "You can’t continue to have a strong, vibrant economy if in fact folks don’t have money in their pockets.”</p>
<h2>Other benefits for unions: A safety net and a higher floor</h2>
<p>Some union members see a higher minimum wage as a safety net.</p>
<p>Robert Matsuda is a studio violinist represented by the American Federation of Musicians, part of the AFL-CIO. Even though he’s not working for the minimum wage now, he worries that may not last: He’s getting fewer and fewer gigs as more film and TV scoring is outsourced overseas.</p>
<p>“I might have to take a minimum wage job in the near future, so it might directly affect me,” said Matsuda.</p>
<p>There’s also a more tangible benefit for unions, says Nelson Lichtenstein, the labor historian: A higher minimum wage means a higher wage floor to negotiate with in future contracts.</p>
<p>“It’s one labor market, and if you can raise the wages in those sectors that have been pulling down the general wage level – i.e: fast food and retail – then it makes it easier for unions to create a higher standard and go on and get more stuff,” said Lichtenstein.</p>
<p>On Friday morning, union members will rally in front of Los Angeles City Hall, calling on the council to enact a $15.25 an hour minimum wage as soon as possible.</p><img src="//feeds.feedburner.com/~r/debord-report/~4/Y1EM7RYuGEQ" height="1" width="1" alt=""/>Thu, 29 Jan 2015 05:30:46 -0800http://www.scpr.org/blogs/economy/2015/01/29/17859/why-unions-lead-the-15-minimum-wage-fight-though-f/Potential NFL stadium moves closer to going on Inglewood ballot this summerhttp://www.scpr.org/blogs/economy/2015/01/26/17852/nfl-stadium-moves-closer-to-going-on-inglewood-bal/http://feeds.scpr.org/~r/debord-report/~3/pB0qQK-JG6w/
Ben Bergman<img src="http://a.scpr.org/i/346cba98b9537679970cd26ed4294cd2/98008-small.jpg" width="450" height="327" alt="Inglewood Stadium" />
<p><i>A rendering of he new stadium and complex to be built near the Forum in Inglewood was released by the Hollywood Park Land Company, Kroenke Group and Stockbridge Capital Group earlier this month.; Credit: Courtesy Hollywood Park Land Company</i></p>
<p>A measure that would allow an 80,000-seat NFL-caliber stadium to be built in Inglewood could be on that city’s ballot by this summer after developers submitted almost three times as many signatures than needed for a voter initiative.</p>
<p>“22,216 signatures were submitted to the city clerk today,” said Gerard McCallum, project manager with the Hollywood Park Land Company. “It was unbelievable. The response was more than we could have ever anticipated.”</p>
<p>Normally, before construction can begin on any project there has to be an environmental review, but that can take a long time and time is something in short supply for St. Louis Rams Owner Stan Kroenke and his plan to move the team to L.A.</p>
<p>“We would be going through another three year project process, and the current construction wouldn’t allow that,” said McCallum, referring to the redevelopment of 238 acres of the old Hollywood Park site that was permitted in 2009.</p>
<p>“If we were going to make any modifications, it would have to be approved this year,” said McCallum.</p>
<p>To speed things up, developers decided to bring the stadium project directly to Inglewood voters, which required 8,000 signatures.</p>
<p>Once the signatures are verified, Inglewood’s City Council will consider the measure, then developers hope a special election would take place before the start of the next NFL season.</p>
<p>McCallum says construction would begin whether the Rams or any other team decides to move here, though on Monday Kroenke made another move suggesting a return of the NFL to Los Angeles could be closer than it has been at any point during the last two decades, though not until after the 2015 season. <a href="http://Rams%20management%20sent%20a%20letter%20to%20regional%20officials%20on%20Monday%20afternoon.%20The%20letter%20said%20the%20team%20was%20converting%20its%2030-year%20lease%20to%20an%20%E2%80%9Cannual%20tenancy,%E2%80%9D%20effective%20April%201%20and,%20%E2%80%9Cin%20the%20absence%20of%20intervening%20events,%E2%80%9D%20extending%20through%20March%2031,%202016.%20%20The%20notice,%20which%20has%20long%20been%20expected,%20does%20two%20things:%20%20It%20allows%20owner%20Stan%20Kroenke%20to%20pull%20the%20team%20out%20of%20St.%20Louis%20as%20soon%20as%202016,%20because%20the%20Rams%20lease%20will%20now%20expire%20at%20the%20end%20of%20every%20season.%20The%20original%20lease%20was%20to%20expire%20in%202025.%20It%20also%20legally%20binds%20the%20Rams%20to%20play%20at%20the%20Edward%20Jones%20Dome%20next%20fall%20%E2%80%94%20a%20point%20on%20which%20many%20here%20were%20uncertain.">From The St Louis Post-Dispatch:</a></p>
<blockquote>
<p>Rams management sent a letter to regional officials on Monday afternoon. The letter said the team was converting its 30-year lease to an “annual tenancy,” effective April 1 and, “in the absence of intervening events,” extending through March 31, 2016.</p>
<p>The notice, which has long been expected, does two things:</p>
<ul>
<li>It allows owner Stan Kroenke to pull the team out of St. Louis as soon as 2016, because the Rams lease will now expire at the end of every season. The original lease was to expire in 2025.</li>
<li>It also legally binds the Rams to play at the Edward Jones Dome next fall — a point on which many here were uncertain.</li>
</ul>
</blockquote><img src="//feeds.feedburner.com/~r/debord-report/~4/pB0qQK-JG6w" height="1" width="1" alt=""/>Mon, 26 Jan 2015 19:01:34 -0800http://www.scpr.org/blogs/economy/2015/01/26/17852/nfl-stadium-moves-closer-to-going-on-inglewood-bal/Want a job in LA? Be a nurse, don't work in manufacturinghttp://www.scpr.org/blogs/economy/2015/01/26/17843/want-a-job-in-la-be-a-nurse-don-t-work-in-manufact/http://feeds.scpr.org/~r/debord-report/~3/ErPrmKFi7p4/
Ben Bergman<img src="http://a.scpr.org/i/d1b92f869b11a8bb1b230fee24e3c1b4/81794-small.jpg" width="450" height="300" alt="AIDS Healthcare Foundation Offers Free Meningitis Vaccinations" />
<p><i>Tom Rachal (R) receives a free meningitis vaccine from Dr. Wayne Chen at the AIDS Healthcare Foundation pharmacy on April 15, 2013 in Hollywood, California. Los Angeles County's unemployment rate is 7.9%, down from 9.2% a year ago, and once again it was healthcare that added the most jobs: 22,000.
<br />; Credit: Kevork Djansezian/Getty Images</i></p>
<p>If you want a job in Los Angeles County, you’re best off being a nurse or a hotel worker and you’re less likely to find employment in manufacturing. </p>
<p>We’re getting our first look at the <a href="http://www.calmis.ca.gov/file/lfmonth/la%24pds.pdf">employment numbers for 2014</a>, which show mostly good news: California’s unemployment has fallen to 7 percent, the lowest rate in five and a half years. (The final numbers come out in March)</p>
<p>The state’s job growth outpaced the rest of the country for the third straight year, though it slowed slightly towards the end of the year.</p>
<p>California added jobs at a 2.2 percent annual rate last year, outpacing the nation’s 1.8 percent rate. </p>
<p>Los Angeles County fared the worst as far as seasonally adjusted year-to-year job gains among California's major metropolitan areas, according to<a href="http://laedc.org/event/laedcs-2015-2016-economic-forecast-annual-february-event/"> The Los Angeles County Economic Development Corp</a>.:</p>
<ul>
<li>San Jose/Silicon Valley +4 percent</li>
<li>San Francisco Bay Area + 3.8 percent </li>
<li>San Diego +3.3 percent</li>
<li>Inland Empire +1.9 percent</li>
<li>Orange County +2.3 percent</li>
<li>Ventura +2 percent</li>
<li>Los Angeles +1.7 percent</li>
</ul><p>Los Angeles County's unemployment rate is 7.9 percent, down from 9.2 percent a year ago, and once again it was health care that added the most jobs: 22,000.</p>
<p>"Part of it is demographic, and part of it was the Affordable Care Act, which is helping more individuals take advantage of health care," said Robert Kleinhenz, Chief Economist at the L.A. County Economic Development Corp.</p>
<p>Aside from an aging population needing more health care, Kleinhenz adds that more people can afford to get medical treatment because of the improvement in the economy. </p>
<p>With more money in their pockets, more people have also been traveling, which made leisure and hospitality the second-best area for job growth in the county, with 11,300 new jobs.</p>
<h2>What's not doing well? </h2>
<p>Manufacturing, especially in non-durable goods – which includes food and clothing – lost the most jobs in L.A. County in 2014: 6,700 jobs. The only other sector that shed jobs was the government, which lost almost 3,800 jobs positions last year.</p>
<p>Kleinhenz also pointed to wholesale trade, which lost 300 jobs year-to-year in but saw job growth in the Inland Empire. </p>
<p>"Some parts of the goods movement may be moving into the Inland Empire, where we have seen in recent years quite a bit of warehouse building taking place,” said Kleinhenz. </p><img src="//feeds.feedburner.com/~r/debord-report/~4/ErPrmKFi7p4" height="1" width="1" alt=""/>Mon, 26 Jan 2015 05:30:28 -0800http://www.scpr.org/blogs/economy/2015/01/26/17843/want-a-job-in-la-be-a-nurse-don-t-work-in-manufact/Overall unemployment in state, LA County keeps falling, but some places still strugglehttp://www.scpr.org/blogs/economy/2015/01/23/17842/overall-unemployment-in-state-la-county-keeps-fall/http://feeds.scpr.org/~r/debord-report/~3/TeJ6hoyUDV0/
Brian Watt<img src="http://a.scpr.org/i/6d4555c43cf4292bbbdd7061d1f533c0/99056-small.jpg" width="450" height="338" alt="Walter Flores" />
<p><i>Walter Flores was unemployed for 8 months in 2014 but is now working in sales for Workforce Solutions in Compton; Credit: Brian Watt/KPCC</i></p>
<p>California's unemployment rate continued its decline in December, ending the year at 7 percent, according to figures released Friday by the state Employment Development Department.</p>
<p>But in Compton, Willowbrook and the Florence-Graham section of Los Angeles County, it remains about double that, data show.</p>
<p>“You might have work this week. But next week, you won’t have work,” said James Hicks, 36, 0f Compton. He's worked in warehouses through staffing agencies, but said the jobs have always been temporary.</p>
<p>Statewide, California has added jobs at a faster rate than the United States for three straight years, according to Robert Kleinhenz, Chief Economist with the Los Angeles County Economic Development Corporation. He pointed out the statewide unemployment rate is now where it was June 2008. </p>
<p>"All in all, with the recession now five years back in our rearview mirror, we’re finally at the point where we can say that we have shrugged off quite a bit of the pain that occurred back during those times," Kleinhenz said.</p>
<p>The Los Angeles County metro area saw a net gain of almost 71,000 jobs in 2014. The County's overall unemployment rate has fallen to 7.9 percent from 9.2 percent a year ago.</p>
<p>But Compton's unemployment rate was 13 percent in December.</p>
<p>“I’d rather have a full-time type of gig, working 40 hours a week, but right now, even if you get 25 hours, it’s a blessing,” said Hicks, the warehouse worker in Compton.</p>
<p>On Thursday, he interviewed to be a guard with a security firm, but was told there weren’t any positions available. He had another security guard job six months ago that he thought might become full time and permanent. </p>
<p>"It was going all right for about two to three months, until they cut my hours and days," Hicks said. </p>
<p>Walter Flores lives in La Mirada but currently works as an account executive in the Compton office of Workforce Solutions. He was unemployed for about eight months last year after a car accident.</p>
<p>"Losing what you love to do is a tough one, but I'm back," he said. "2015 is going to be a great year."</p>
<p>Flores said most major warehouse and logistics companies prefer to hire temporary workers through industrial staffing firms like the one where he's working because their needs are sporadic. </p>
<p>But he said it's still a potential opportunity.</p>
<p>"It doesn't matter that it's a temporary position, as long as you put your foot in the door, and then you let the employer know how much value you are for the company," Flores said. </p>
<p>Hicks, who's earned a GED, wants to find a program to study physical therapy. But first, he’d like to find a job. </p>
<p>He said you can't judge Compton’s residents by its unemployment rate.</p>
<p>"Some of us out here who [are] looking for jobs, but sometimes it’s the luck of the draw," he said. "It’s kind of scarce out there.” </p><img src="//feeds.feedburner.com/~r/debord-report/~4/TeJ6hoyUDV0" height="1" width="1" alt=""/>Fri, 23 Jan 2015 16:35:52 -0800http://www.scpr.org/blogs/economy/2015/01/23/17842/overall-unemployment-in-state-la-county-keeps-fall/Small firms and nonprofits like KPCC struggle with technology's diversity problemhttp://www.scpr.org/blogs/economy/2015/01/21/17828/small-firms-and-non-profits-like-kpcc-struggle-wit/http://feeds.scpr.org/~r/debord-report/~3/qgp0Mi2QSB8/
Brian Watt<img src="http://a.scpr.org/i/4ad02e60b58630f654d8ed146adb37dd/98794-small.jpg" width="450" height="338" alt="Mary Ann de Lares Norris" />
<p><i>Mary Ann de Lares Norris is Chief Operating Officer of Oblong Industries. She brings her dog LouLou to Oblong's downtown LA headquarters.; Credit: Brian Watt/KPCC</i></p>
<p>KPCC recently reported on the <a href="http://www.scpr.org/blogs/economy/2014/12/10/17593/tech-industry-diversity-how-candidates-are-taking/">tech world’s diversity problem</a>. Technology firms face challenges in hiring diverse staffs of its coders, web developers and software engineers.</p>
<p>It’s also a challenge at nonprofits such as Southern California Public Radio, parent of 89.3 KPCC, which has always sought to build a staff that reflects the region it serves. The section of that staff that develops the KPCC app and makes its website run is all white and mostly male.</p>
<p>But a small talent pool means the diversity challenge is even greater for nonprofits and even smaller tech firms.</p>
<p>“The first problem is that all of the people working for me are male,” says Alex Schaffert, the one female on KPCC’s tech team. “I’m kind of focusing on maybe getting another girl into the mix.”</p>
<p>Schaffert can use the term “girl” because she happens to be the leader of the tech team: KPCC’s Managing Director of Digital Strategy and Innovation. </p>
<h2>Why diversity is important</h2>
<p>Schaffert recently launched the topic of diversity – or lack thereof – at a weekly meeting of her team. She expected a “stilted and awkward” discussion from the five white men on her team, but a few of them didn’t hold back. </p>
<p>“Not having diversity represented on the team leaves us more susceptible to circular thinking and everyone sort of verifying each other's assumptions,” said Joel Withrow, who was serving at the time as KPCC’s Product Manager. “It impacts the work. It limits what you’re able to build.”</p>
<p>Sean Dillingham, KPCC’s Design and Development Manager, said living in a diverse community is what attracted him to Los Angeles, and he wants diversity in his immediate work team, too.</p>
<p>“When I look at other tech companies, I will often go to their ‘about us’ page, where they’ll have a page of photos of everyone, and I am immediately turned off when I just see just a sea of white dudes, or even just a sea of dudes,” Dillingham said.</p>
<h2>Big competition, small talent pool</h2>
<p>Dillingham and Schaffert are currently recruiting heavily to fill two tech-savvy positions. When a reporter or editor job opens up at KPCC, Schaffert says close to 100 resumes come in.</p>
<p>"But if you post a programmer job, and you get three or four resumes, you may not get lucky among those resumes," she says. "There may not be a woman in there. There may not be a person of color in there."</p>
<p>In other words, the talent pool is already small, and the diversity challenge makes it even smaller. KPCC is competing for talent with Google and Yahoo and all the start-ups on L.A.’s Silicon Beach. </p>
<p>Schaffert’s being proactive, mining LinkedIn and staging networking events to attract potential candidates. She’s also trying to make sure KPCC’s job descriptions don’t sound like some she's seen in the tech world.</p>
<p>"If you read between the lines, they’re really looking for someone who is male and is somewhere between 25-30 years old and likes foosball tables and free energy drinks in the refrigerator," Schaffert says. “So you read between lines, and you know that they’re not talking about me, a mother of two kids who also has a demanding career. They're talking about someone different.”</p>
<h2>Pay vs. passion</h2>
<p>Schaffert's challenges and approaches to dealing with them are similar to those of Mary Ann de Lares Norris, the Chief Operating Officer at <a href="http://www.oblong.com/">Oblong Industries</a>. Based in downtown Los Angeles and founded in 2006, the company designs operating platforms for businesses that allow teams to collaborate in real time on digital parts of a project.</p>
<p>“I think technology and diversity is tough,” Norris told KPCC. She’s proud her company’s management ranks are diverse, but says only 12 percent of its engineers are female. “Pretty standard in the tech industry, but it’s not great,” Norris says. “We really strive to increase that number, and all of the other companies are also, and it's really hard.”</p>
<p>Like Schaffert at KPCC, Norris works hard fine-tuning job descriptions and communicating that her company values diversity and work-life balance. But sometimes, it just boils down to money.</p>
<p>"We have to put out offers that have competitive salaries,” Norris says, adding that she can’t compete with the major tech firms. "The Googles and the Facebooks of the world can always pay more than we can. So we attract people who are passionate about coming to work for Oblong. And, of course, we also offer stock options."</p>
<p>KPCC doesn’t have the stock options, but we’ve got plenty of passion. Could that be the secret recruiting weapon for both small tech companies and nonprofits? </p>
<p><a href="http://talent.linkedin.com/blog/index.php/2015/01/recruit-tech-talent-in-2015-by-going-back-to-the-basics">LinkedIn recently surveyed engineers </a>about what they look for in an employer. Good pay and work-life balance were the two top draws. Slightly more women prioritized work-life balance and slightly more men chose the big bucks. </p>
<p>Clinical Entrepreneurship professor <a href="http://www.marshall.usc.edu/faculty/directory/awertman">Adlai Wertman</a> says that, historically, nonprofits and small businesses actually had the upper hand over big companies in recruiting minorities and women.</p>
<p>"There’s a feeling that they’re safer, more caring environments, less killer environments, and we know that corporate America has been the bastion of white males," said Wertman. </p>
<p>But Wertman says that advantage disappears in the tech world because of the "supply-and-demand" problem with talent. When big firms decide to focus on diversity – as some have recently — they have plenty of resources.</p>
<p>"They’re always going to be able to pay more, and in truth they’re getting access to students coming out of these schools in ways that we as nonprofits and small companies never will," said Wertman. </p>
<p>Wertman worked 18 years as an investment banker on Wall Street, then left to head a nonprofit on L.A.’s skid row. Now he heads the Brittingham Social Enterprise Lab Enterprise Lab at USC’s Marshall School of Business. He believes that, early on, the big companies have the best shot attracting diverse tech talent. But in the long run, much of that talent will turn back to smaller firms and nonprofits.</p>
<p>"I think ultimately people vote with where they’re most comfortable, where 'my values align with my employer's values, and if I don’t feel those values align, then I’m going to leave,'" Wertman said. "Ultimately, I think, for a lot of women and minorities, there’s a lot of value alignment within communities that are doing good in the world." </p><img src="//feeds.feedburner.com/~r/debord-report/~4/qgp0Mi2QSB8" height="1" width="1" alt=""/>Wed, 21 Jan 2015 13:53:14 -0800http://www.scpr.org/blogs/economy/2015/01/21/17828/small-firms-and-non-profits-like-kpcc-struggle-wit/Can Uber lower fares and have its drivers make more money?http://www.scpr.org/blogs/economy/2015/01/20/17816/can-uber-lower-fares-and-have-its-drivers-make-mor/http://feeds.scpr.org/~r/debord-report/~3/BiNgncJ63e8/
Ben Bergman<img src="http://a.scpr.org/i/d3251ed2e677197cf0f7d6ca3d2309a3/97096-small.jpg" width="450" height="253" alt="Ride hailing services like Uber have changed ground transportation for both passengers and drivers. As Uber rapidly grows, it becomes more difficult for its drivers to keep up with the hustle." />
<p><i>For the first time, Uber will guarantee drivers an hourly wage of $20 an hour in Los Angeles, or $26 during peak times.; Credit: David Ramos/Getty Images</i></p>
<p>To keep demand high during the slower winter months, the ridesharing service, Uber, has cut fares by 20 percent in 48 markets – including Los Angeles and Orange County.</p>
<p>The company says a trip from West Hollywood to downtown will now be around nine dollars, instead of $11.</p>
<p>When Uber lowered prices in the past to muscle out competitors like Lyft and taxi services, passengers loved it but drivers have complained it puts an unfair squeeze on them, complaining their already low take went even lower.</p>
<p>Uber stresses the fact cutting fares actually helps drivers because they get more business. <a href="http://blog.uber.com/PriceCut2015">In a blog post,</a> the company points to data from Chicago where fares dropped 23 percent last month compared to December 2013 while drivers' income increased by 12 percent.</p>
<p>But drivers have been skeptical whether volume can make up for the price drop. The company's claim that New York city drivers <a href="http://www.forbes.com/sites/ellenhuet/2014/12/01/uber-data-show-how-wildly-driver-pay-can-vary/">earn a median of $90,766 a year</a> <a href="http://www.forbes.com/sites/ellenhuet/2014/12/01/uber-data-show-how-wildly-driver-pay-can-vary/">has been refuted</a>. Slate talked to<a href="http://www.slate.com/articles/business/moneybox/2014/10/uber_driver_salary_the_ride_sharing_company_says_its_drivers_make_great.html"> New York UberX driver Jesus Garay in October:</a></p>
<blockquote>
<p>“They say it doesn’t hurt the pocket of the drivers,” Garay says of the 20 percent fare cuts. “It does. Because it’s impossible with those numbers to be in business.”</p>
<p>The way drivers see it, ride volume can only increase so much in response to lower prices. Garay says that on average, a ride takes him 20 minutes from start to finish: five minutes to reach the pickup location, five to wait for the customer, and 10 to drive to the destination. For a trip of that length, Garay says he’ll make $10 or $11. “So if you’re busy, you’re going to make three rides in an hour,” he explains. </p>
</blockquote>
<p>Newly flush with a $40 billion valuation, Uber is now willing to put its money where its mouth is; For the first time, Uber will guarantee its partners – as it calls them - an hourly wage of $20 an hour in Los Angeles, or $26 during peak times. (The guarantee comes with a few conditions: Drivers have to accept 90% of trips, average at least one trip per hour, and be online for 50 minutes of every hour worked)</p><img src="//feeds.feedburner.com/~r/debord-report/~4/BiNgncJ63e8" height="1" width="1" alt=""/>Tue, 20 Jan 2015 16:58:11 -0800http://www.scpr.org/blogs/economy/2015/01/20/17816/can-uber-lower-fares-and-have-its-drivers-make-mor/ LA residents need to make $33 an hour to afford the average apartmenthttp://www.scpr.org/blogs/economy/2015/01/15/17806/la-residents-need-to-make-34-an-hour-to-afford-ave/http://feeds.scpr.org/~r/debord-report/~3/5sqPX9jBwbA/
Ben Bergman<img src="http://a.scpr.org/i/320b60b719b02580bfdf7cc6a363e828/67772-small.jpg" width="450" height="300" alt="What has your hunt for a rental in Los Angeles been like? " />
<p><i>Finding affordable apartments is especially tough in Los Angeles, where 52 percent of people are renters, according to a new study.; Credit: Justin Sullivan/Getty Images</i></p>
<p>You need to earn at least $33 an hour — $68,640 a year — to be able to afford the average apartment in Los Angeles County, according to Matt Schwartz, president and chief executive of the California Housing Partnership, which advocates for affordable housing. </p>
<p>That's more than double the level of the highest minimum wage being proposed by Mayor Eric Garcetti, which he argued would make it easier for workers to afford to live here. “If we pass this, this will allow more people to live their American Dream here in L.A.," <a href="http://www.scpr.org/news/2015/01/07/49098/with-focus-on-minimum-wage-los-angeles-leaders-slo/">Garcetti </a>proclaimed when he announced his plan to raise the minimum wage to $13.25 by 2017. </p>
<p>The $33 an hour figure is based on the average L.A. County apartment rental price of $1,716 a month,<a href="http://lusk.usc.edu/sites/default/files/USC%20Casden%20Multifamily%20Forecast%202014.pdf"> from USC's 2014 Casden Multifamily Forecast.</a> An apartment is considered affordable when you spend no more than 30 percent of your paycheck on rent.</p>
<p>To earn $33 an hour or more, you'd need to have a Los Angeles job like one of the following occupations: </p>
<ul>
<li>Marketing manager: $66,538 (<a href="http://www.payscale.com/research/US/Location=Los-Angeles-CA/Salary">average in L.A., according to Payscale.com</a>)</li>
<li>LAUSD teacher: $70,000 (average salary, <a href="http://home.lausd.net/apps/news/show_news.jsp?REC_ID=398613&amp;id=0">according to LAUSD</a>)</li>
<li>Software engineer: $82,669 (<a href="http://www.payscale.com/research/US/Location=Los-Angeles-CA/Salary">average according to Payscale.com</a>)</li>
<li>Lawyer: $104,249 (<a href="http://www.payscale.com/research/US/Location=Los-Angeles-CA/Salary">average according to Payscale.com</a>)</li>
</ul><p>But many occupations typically earn far below that $33 an hour threshold in L.A. County, according to the California Housing Partnership:</p>
<ul>
<li>Secretaries: $36,000 ($17 an hour)</li>
<li>EMT Paramedics: $25,00 ($12 an hour)</li>
<li>Preschool teachers: $29,000 ($14 an hour)</li>
</ul><p>That's why L.A. residents wind up spending an average of 47 percent of their income on rent, which is the highest percentage in the nation, according to UCLA's Ziman Center for Real Estate.</p>
<p>Naturally, people who earn the current California minimum wage of $9 an hour ($18,720 a year) would fare even worse in trying to afford an average apartment.</p>
<p>Raising the minimum wage to $13.25 would equal a $27,560 salary; raising it to $15.25 an hour totals $31,720 a year.</p>
<h2>What about buying a home?</h2>
<p>In order to afford to purchase the median-priced home in Los Angeles, you'd need to earn $96,513 a year, <a href="http://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html">according to HSH.com, a mortgage information website.</a> </p>
<p>The median home price in Los Angeles is $570,500, according to the real estate website, <a href="http://www.trulia.com/real_estate/los_angeles-california/market-trends/">Trulia.com.</a></p>
<p>But consider that the median income in Los Angeles is about half that: $49,497, according to census numbers from 2009-2013.</p>
<p>So it's no surprise that Los Angeles has been rated as the most unaffordable city to rent in America <a href="http://www.scpr.org/blogs/economy/2014/06/26/16922/why-you-should-move-to-north-dakota-la-has-most-un/">by Harvard </a>and <a href="http://newsroom.ucla.edu/stories/ucla-study-identifies-l-a-as-most-unaffordable-rental-market-in-the-nation">UCLA</a>. </p>
<p>The cost of housing has gone up so much that even raising the minimum wage to $15.25 an hour – as some on the city council have proposed doing by 2019– would not go very far in solving the problem.</p>
<p>“Every little bit helps, but even if you doubled the minimum wage, it wouldn’t help most low-income families find affordable rental housing in Los Angeles,” said Schwartz.</p>
<p><em>What percentage of your income to you spend on housing in Los Angeles? Let us know in the comments, on <a href="http://facebook.com/kpcc">our Facebook page</a> or on <a href="http://twitter.com/kpcc">Twitter (@KPCC).</a> You can see how affordable your neighborhood is <a href="http://projects.scpr.org/longreads/high-rent-few-options/">with our interactive map.</a></em></p>
<p><em>An earlier version of this story incorrectly calculated the hourly pay rate, based on the estimated $68,640 annual pay needed to afford the average rent in L.A. County. KPCC regrets the error.</em></p><img src="//feeds.feedburner.com/~r/debord-report/~4/5sqPX9jBwbA" height="1" width="1" alt=""/>Thu, 15 Jan 2015 15:28:18 -0800http://www.scpr.org/blogs/economy/2015/01/15/17806/la-residents-need-to-make-34-an-hour-to-afford-ave/LA and the $15 minimum wage: It all started accidentally at a Washington airporthttp://www.scpr.org/blogs/economy/2015/01/15/17798/la-and-the-15-minimum-wage-it-all-started-accident/http://feeds.scpr.org/~r/debord-report/~3/YyD5P8IOSik/
Ben Bergman<img src="http://a.scpr.org/i/6756b9f0a514620f91a8fa85d7ca8eb8/98470-small.jpg" width="450" height="338" alt="David Rolf" />
<p><i>David Rolf, International Vice President of the Service Employees International Union, stands in his downtown Seattle office. Rolf led the campaign to bring a $15 minimum wage to Seatac, Washington in 2013.; Credit: Ben Bergman/KPCC</i></p>
<p>As Los Angeles mulls a law that would raise the minimum wage above the current California minimum of $9 an hour, it's the latest city to jump on a trend that started as the by-product of a failed labor negotiation in the state of Washington.</p>
<p>The first city to enact a $15-per-hour minimum wage was SeaTac, Wash., — a tiny airport town outside Seattle. "SeaTac will be viewed someday as the vanguard, as the place where the fight started," the lead organizer of SeaTac's $15 campaign, <a href="http://seiu775.org/leadership/david-rolf/">David Rolf,</a> told supporters in November 2013 after a ballot measure there barely passed.</p>
<p>Rolf never set out to raise SeaTac’s minimum wage, much less start a national movement. Speaking from a sparse corner office in downtown Seattle at the Service Employees International Union 775, which he founded in 2002, Rolf told KPCC that his original goal in 2010 was to unionize workers at SeaTac airport.</p>
<p>When employers – led by Alaska Airlines — played hardball, Rolf put the $15 minimum wage on the ballot as leverage. “We had some polling in SeaTac that it could pass, but it was not at all definitive,” Rolf said.</p>
<p>That proved prescient: In a city of just 12,108 registered voters, Rolf's staff signed up around 1,000 new voters, many of them immigrants who had never cast a ballot. The measure won by just 77 votes.</p>
<p>It's an irony that the new law doesn't apply to workers at the center of the minimum wage campaign: The airport workers at SeaTac. That's because the Port of Seattle, which oversees the airport, <a href="http://www.kplu.org/post/airport-workers-urge-port-commission-adopt-15-min-wage-passed-voters">challenged the initiative, </a>arguing that the city's new minimum wage should not apply to the nearly 5,000 workers at the airport. A county judge agreed. Supporters of the $15 wage have appealed.</p>
<p>Still, Rolf said, "I think people are proud that that’s what happening. There are leaders of the movement in Seattle, including our mayor, that said shortly after the victory, 'Now we have to take it everywhere else.'"</p>
<p>The $15 minimum wage spread to Seattle last June and to San Francisco in November. </p>
<h2>Why $15 an hour?</h2>
<p>The $15 figure first came to people’s attention in a series of strikes by fast food workers that started two years ago in New York. </p>
<p>“I think it’s aspirational, and it provides a clean and easy-to-understand number," Rolf said. "You can debate whether it ought to really be $14.89 or $17.12, and based upon the cost of living in different cities, you could have a different answer. But in the late 19th and early 20th century, American workers didn’t rally for 7.9 or 8.1 hour working day. They rallied for an eight-hour day.”</p>
<p>“What’s really remarkable about social protest movements in American history is that the radical ideas of one group are often the common sense ideas of another group in a matter of a few years," said Peter Dreier, professor of politics at Occidental College.</p>
<p>Rolf is hopeful the $15 minimum wage can spread to every state. But <a href="http://www.history.ucsb.edu/people/person.php?account_id=39">Nelson Lichtenstein</a>, Director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara, is skeptical.</p>
<p>“I don’t think having high wages in a few cities will mean it will spread to red state America,” he said. </p>
<p>Lichtenstein said cities like L.A. have become more labor friendly, thanks largely to an influx of immigrants, but that’s not the case in the South. Oklahoma recently banned any city from setting its own minimum wage, joining at least 12 other states with similar laws, according to Paul Sonn, general counsel and program director at the National Employment Law Project.</p>
<p>In November, voters in four Republican-leaning states — Alaska, Arkansas, South Dakota, and Nebraska — approved higher minimum wages, but they weren’t close to $15.</p>
<p>A $15 dollar wage would have a much greater impact in Los Angeles than Seattle or San Francisco because the average income here is much lower than in those cities. Post-recession, income inequality has become much more of a concern for voters, which has made $15 more palatable, Sonn said.</p>
<p>This fall, the Los Angeles City Council enacted a $15.37 minimum wage for hotel workers that takes effect next year. A similar law has been in effect around LAX since 2007. </p>
<p>But even though California cities have been allowed to set their own minimum wages for more than a decade, L.A. has never come close to doing so.</p>
<p>Until now.</p><img src="//feeds.feedburner.com/~r/debord-report/~4/YyD5P8IOSik" height="1" width="1" alt=""/>Thu, 15 Jan 2015 09:38:18 -0800http://www.scpr.org/blogs/economy/2015/01/15/17798/la-and-the-15-minimum-wage-it-all-started-accident/